APA approves CKI offer

The bid by a Hong-Kong consortium led by CK Infrastructure (CKI) to acquire APA Group has been accepted by the Australian company.

CKI, who first launched the bid for APA in June this year, is offering a price of $11 per share for the infrastructure business in a move that would cost around $13 billion.

The bid also permits APA securityholders to receive a dividend of $0.24.

APA Chairman Michael Fraser said CKI had made a good offer.

“The offer made by the CKI Consortium is compelling,” he said.

“It is an all cash offer, representing a premium of over 30 per cent to APA’s recent trading prices and gives a certainty of value to securityholders.”

CKI now needs to receive regulatory approval for the takeover from the ACCC, with the competition watchdog expected to deliver a response in September.

With a network of natural gas pipelines spanning around 15,000 km, APA owns and operates an extensive infrastructure portfolio value at more than $20 billion.

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